A Guide to Auto-Enrolment Workplace Pensions

By March 30, 2017Lincolnshire
A Guide to Auto-Enrolment Workplace Pensions

In the past many employees may have missed out on the opportunity of a workplace pension, either because they were not offered by their employer or because the employee didn’t apply to join their company’s pension scheme. By April 2019 every employer must provide a workplace pension to those who are:

  • Aged over 22
  • Earn more than £10,000 a year
  • Work in the UK

Providing you are eligible and meet the above criteria you will be automatically enrolled in the pension scheme provided by your employer. While many employers have already adopted the auto-enrolment pension schemes, the law for them to do so does not come into force until April 2019, so your employer has until then to provide a pension scheme if they are not already doing so.

Although you will be automatically enrolled into your employers auto-enrolment pension you can opt out, but in many cases, you must be opted in to be able to opt out. If you are unsure if the auto-enrolment pension scheme your employer is offering is worthwhile it is advisable to seek financial advice from an independent financial adviser before making any changes.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

How do Auto-Enrolment Workplace Pensions Work?

Auto-enrolment pensions are designed to help you build a pension pot for the future, you will be required to make a monthly contribution which will be a percentage of your pay, your employer will also contribute and you will receive a tax relief from the Government to help you build your pension fund.

Depending on the type of scheme offered by your employer you may be able to increase your contribution amount, this could mean that your employer will contribute more too. The more you pay into the scheme the greater the benefit for your retirement.

It is important that your employer provides you with information about the scheme prior to enrolling and you should seek independent financial advice to make sure it is the best option for your personal circumstances.

What Happens to your Pension When You Change Jobs?

If you are enrolled in an auto-enrolment workplace pension scheme and change jobs, you may be able to transfer your current pension to your new employer. This will depend on the rules of your current auto-enrolment pension scheme and the rules of your new employer’s pension scheme. It is always best to seek independent financial advice on transferring pensions before making any changes to ensure you are making an informed decision.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At PensionAdvice.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

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